B&B: Bank of Mum and Dad set to close

26 October 2006
A majority of British adults (55 per cent) are now of the opinion that children should begin saving before they reach their tenth birthday, according to findings from Bradford & Bingley (B&B).

The UK bank claims that the increasing number of adults who think their offspring should take more responsibility for their own finances indicates that 'the Bank of Mum and Dad' could be closing in the near future.

Around one-third of the adult population believes that children should have saved £2,000 or more by the age of 18 and they would expect their children to manage their own savings for common expenses such as purchasing a car or finding a deposit for a house.

"If this trend of parents expecting their children to save rather than parents bailing them out continues then the Bank of Mum and Dad will be hanging up the "closed" sign in two generations time," said Steve Potter, head of savings for Bradford & Bingley.

"This makes it all the more important for parents to encourage their children to save from birth."

Mr Potter urges parents to encourage their children to adopt a savings habit from an early age by opening a dedicated investment account on their behalf while they are young children.

To read more about child investment accounts, click here.

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